Pakistan market: Technical outlook indicates continued upward momentum

Islamabad: The Karachi Stock Exchange (KSE)-100 index has once again demonstrated its upward momentum, closing at a promising 165,494, marking an impressive gain of 1,646 points day-over-day. This bullish trend was underpinned by trading volumes reaching 1,350 million shares, an increase from the previous 1,286 million shares, signaling robust investor interest.

The market is anticipated to encounter resistance between 166,550 and 166,870 levels. Should the index surpass this range, it could target the next milestones at 167,447 and 168,187. Conversely, the index finds support between 164,200 and 165,420, providing a safety net for investors. Technical indicators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are both on an upward trajectory, reinforcing the positive market outlook. Analysts recommend purchasing on market dips, with a stop-loss suggested below 164,208. The support and resistance levels are identified at 164,283 and 166,630, respectively.

In sector-specific strategies, Maple Leaf Cement Factory (MLCF) is advised as a ‘buy on dips’ with targets at Rs111.61 and Rs114.50, and a stop-loss at Rs107.77. Similarly, International Steels Limited (ISL) is maintaining its recovery trend, with a buying strategy on dips targeting Rs128.93 and Rs131.60, and a stop-loss positioned at Rs122.00.

The data and insights are provided by JS Global, offering a comprehensive view of the current market dynamics and investment strategies.